The Treasury Department and the SBA released an interim final rule allowing Payroll Protection Program (PPP) lenders to increase existing PPP loans to partnerships or seasonal employers who were approved for loans before additional guidance was issued and did not include appropriate amounts in their loan amount calculations.

The IRS Released Notice 2020-32 which provides guidance on the deductibility of expenses paid with Paycheck Protection Program (PPP) loan proceeds that are partially or completely forgiven and excluded from a taxpayer’s income.

On April 23, the Treasury Department and the Small Business Administration (SBA) updated an FAQ document addressing borrower and lender questions concerning implementation of the Paycheck Protection Program (PPP).

On April 17, the IRS released Revenue Procedure 2020-25 in response to the retroactive assignment of a 15-year recovery period for qualified improvement property (QIP) and the bonus depreciation “glitch-fix.”

The IRS has issued guidance providing tax relief under the CARES Act for taxpayers filing a net operating loss (NOL) carryback claim. Notice 2020-26 grants a six-month extension to file such a claim for taxable years arising during calendar year 2018 and ending on or before June 30, 2019.

On April 6, the Treasury Department and the Small Business Administration (SBA) issued an FAQ document, which will be updated on a regular basis, to address borrower and lender questions concerning implementation of the Paycheck Protection Program (PPP).

During these unprecedented times, what are the priorities for nonprofit organizations already operating with scarce resources? Hope Goldstein, Co-Partner-in-Charge of the Nonprofit, Government & Healthcare Group, discusses how nonprofits should prioritize.

On March 24, 2020, the IRS issued a Q&A related to Notice 2020-18, which extended the deadline for filing income tax returns and making income tax payments from April 15, 2020 to July 15, 2020 due to the COVID-19 pandemic.

U.S. Treasury Secretary Steven Mnuchin announced that the federal tax filing deadline would be extended from April 15 to July 15. New York State announced that it would be extending its tax filing deadline to July 15 as well.

In response to the coronavirus pandemic, the Treasury Department has issued guidance (IRS Notice 2020-17) allowing taxpayers to delay making certain federal income tax payments until July 15, 2020 without interest, penalties or additions to tax.

We have been closely monitoring the uncertainly caused by the coronavirus (COVID-19) and have taken multiple steps to protect the well-being of our employees, clients and colleagues, while also ensuring that we will continue to meet our clients’ business needs.

As of March 21, 2020, organizations that do business in New York State must be in compliance with the Stop Hacks and Improve Electronic Data Security (SHIELD) Act. We have developed a checklist to help clients achieve compliance.

Organizations need to incorporate pandemic planning into their business continuity efforts to address situations like the coronavirus, especially key components involving people, process and technology.

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law by President Trump on December 20, 2019. Affecting individual taxpayers, employers and plan administrators, it is considered to be the most significant retirement reform legislation signed into law in the past decade.

The Internal Revenue Service and the Treasury Department issued Final Treasury Regulations related to investing in Qualified Opportunity Zones, addressing many of the questions that have arisen since the program's inception in the Tax Cuts and Jobs Act of 2017.

As expected, President Trump signed into law H.R. 1865 (The Further Consolidated Appropriations Act, 2020) on Friday, December 20, 2019. Two of the law’s provisions have a significant impact on nonprofit organizations.

A bipartisan tax relief proposal, which includes the repeal of the tax on transportation benefits, passed the U.S. House of Representatives on December 17, 2019 and is expected to be passed by the Senate and signed by the President shortly.

After forty-four years, one of the Internal Revenue Service’s oldest requirements has passed into history, in favor of an update that recognizes how much more efficiently today’s technology allows us to communicate.

The IRS has released a second round of proposed regulations regarding investments in Qualified Opportunity Funds, addressing a number of the critical issues and providing long-awaited clarity for investors seeking to take advantage of the opportunity zone tax benefits.

On Monday, December 31, 2018, the Internal Revenue Service issued Notice 2019-09 offering interim guidance for nonprofit executive compensation under Section 4960 of the Internal Revenue Code, which imposes an excise tax of 21 percent (or current rate) on remuneration in excess of $1 million and any excess parachute payments paid by an applicable tax-exempt organizationto a covered employee.

On Friday, December 7, 2018, Governor Cuomo signed into New York law the much-anticipated bill exempting nonprofits who provide pre-tax transportation and parking benefits from the New York State level transportation tax.

In October 2018, Amazon advised its Fulfillment by Amazon (FBA) sellers that it intended to provide the California Department of Tax and Fee Administration (the Department) with the FBA sellers’ contact information (name, address, and email) and U.S. Taxpayer identification numbers, by November 6, 2018.

The IRS has issued proposed regulations relating to the deferral of gain under Code Section 1400Z-2, for investments in qualified opportunity funds (QOFs). Enacted late last year, the QOF provisions, while enticing, left many questions unanswered.

On August 21, 2018, the IRS issued a Notice about new Code section 512(a)(6), which changes the way exempt organizations calculate unrelated business taxable income (UBTI). Each line of business must now be recognized separately, resulting in significant accounting changes and unanswered questions for many exempt organizations, specifically in the areas of partnership interests and net operating losses (NOLs).

On June 21, 2018, the U.S. Supreme Court overturned a longstanding court precedent that applied to the collection of sales tax from online and other remote retailers. In South Dakota v. Wayfair, Inc. et al, the Court replaced the “physical presence” rule with a new standard for determining when states can impose a sales tax collection responsibility on out-of-state sellers of taxable goods and services.

The Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update (ASU) number 2018-08 on June 21, 2018 that clarifies the current accounting guidance on contributions made and received by nonprofit organizations and businesses.

On March 13, 2018, the IRS announced that the 2014 Offshore Voluntary Disclosure Program (OVDP) will close on September 28, 2018. This program allows U.S. taxpayers who failed to report certain offshore assets - and/or the income derived from such assets - to voluntarily come into compliance with U.S. tax laws and generally avoid criminal prosecution in exchange for payment of an offshore penalty.

Like charitable organizations across the nation, charities in New York are constantly reaching out to find new sources of income. These efforts often include raffles and other gaming incentives. In New York, the potential to raise funds through raffles has been extremely limited by a very antiquated set of gaming laws, but that is soon to change.

The tax reform bill signed into law last week could signal a significant one-time deemed repatriation tax on owners of foreign corporations. For a calendar-year foreign corporation with a calendar-year shareholder, the tax would apply to 2017. For others, it would apply to the last year of the foreign corporation that begins before 2018.

While individuals and businesses in the theater and film industry were watching and listening to news of the Tax Cuts and Jobs Act (H.R. 1) bill unfold, the Marks Paneth Theater, Media & Entertainment Group was working with government and industry groups on provisions in the bill specific to the industry, as well as monitoring the broader legislation.

After an impressive display of speed and discipline, both chambers of Congress passed the final reconciled version of the Tax Cuts and Jobs Act (H.R. 1) and it was signed into law by President Trump this week.

The Tax Cuts and Jobs Act (H.R. 1) was passed by Congress today and sent to the President to be signed into law. The final reconciled bill creates a new deduction for qualifying pass-through income, subject to certain limitations. Generally, any trade or business is eligible for the deduction, except specified service businesses.

A conference committee consisting of both House and Senate negotiators will begin work this week to reconcile differences between their respective tax measures. Among the many provisions that differ between the two plans, we have outlined the ones we feel will have the broadest impact on all of our clients and industry groups.

While there are many provisions in the House and Senate tax reform bills that would affect the real estate industry, there are quite a few that are not making the headlines. Real estate business owners should take careful note of these easily overlooked changes.

New regulations, finalized this year, will require foreign-owned disregarded entities to file Form 5472, effective for tax years starting on or after January 1, 2017 and ending on or after December 13, 2017. The purpose of Form 5472 is to disclose foreign owners and certain related party transactions during the tax year in which the reportable transactions occurred.

There has always been some “gray area” in determining whether a grant is an exchange transaction or a contribution – depending on whether the contributor/grantor (the resource provider) received something of approximate equal value in exchange for the resources transferred. This has resulted in difficulties and diverse reporting practices among nonprofit organizations.

On Wednesday, April 26, 2017, the Trump Administration unveiled a tax plan that proposes significant reductions to individual and corporate tax rates, reduces the number of individual tax brackets to three – 10 percent, 25 percent and 35 percent – and repeals the estate tax – among other proposals. While the plan has been presented as a broad outline, rather than in legislative text, the proposal represents a significant overhaul of the US tax system.

New York State Governor Andrew M. Cuomo signed the 2017-2018 State Budget. The bill contains a variety of corporate franchise, personal income, and sales/use tax changes.

This year’s budget proposal contains a number of extenders and measures focused on compliance. The final budget may, however, be more notable for the original January proposals that were removed from the final budget, as opposed to what remained. Next, State legislatures, including New York’s, will likely be focused on addressing the effects of foreseeable federal tax law changes.

New Jersey-based nonprofit organizations are required to file either Form CRI-300R or CRI-200, along with their IRS Form 990 annually. These forms are due to the State of New Jersey on the last day of the sixth month following the close of the organization’s fiscal year.

Did you know that the IRS has adjusted cost of living thresholds? The 2017 cost-of-living adjustment amounts trend higher than 2016 amounts, but only slightly. How might these amounts affect your year-end tax planning or retirement planning?

New York State Governor Andrew Cuomo recently released his FY 17-18 Executive Budget, which suggests a number of changes to the tax law. Among those changes is a proposal to greatly expand the reach of the New York State Real Estate Transfer Tax with respect to transfers of entities holding New York State real estate.

The IRS has again extended the deadline for employers who are subject to the Affordable Care Act’s (ACA’s) information reporting requirements to meet their obligations to employees. Last year the IRS extended the 2016 deadlines for reporting 2015 information, which gave employers an additional two months to provide Form 1095-B, “Health Coverage” and Form 1095-C, “Employer-Provided Health Insurance Offer and Coverage” to their employees.

The IRS recently issued its 2017 cost-of-living adjustments. Mark Baran, Principal in the Tax Practice, explains the adjustments that have been made so that you can take them into account as you implement your 2016 year-end tax planning strategies.

The IRS has issued much-anticipated final regulations intended to keep multinational companies from moving their profits offshore to avoid paying U.S. income taxes. The regs are part of a larger Obama administration campaign against corporate inversions, whereby a U.S. company merges with a foreign firm and then changes its tax address (domicile) to the foreign country. In particular, the regs address earnings stripping, a practice commonly used to minimize taxes after an inversion.

Mark Baran, Principal in the Tax Practice, lays out six simple steps that you should take into consideration to reduce your 2016 tax liability. Act fast, because you only have until December 31st, 2016.

On November 22 - just before the US Department of Labor’s (DOL’s) new overtime rule was scheduled to go into effect on December 1, 2016 - a federal judge issued an injunction and temporarily blocked it. The rule was set to make dramatic changes to the rules determining overtime for certain executive, administrative and professional employees under the Fair Labor Standards Act (FLSA).

The final rule, issued last May, would have doubled (to $47,500) the maximum salary an executive, administrative or professional worker could earn and remain eligible for mandatory overtime pay, making it more difficult for employers to classify employees as exempt from overtime requirements.

The IRS has released proposed regulations that would close so-called tax loopholes that many wealthy taxpayers have used to minimize gift and estate taxes when transferring interests in a closely-held family business to relatives. If finalized, the regulations would significantly limit the effectiveness of certain tax-saving vehicles, including family limited partnerships, for reducing the value of transferred interests for tax purposes. This article details the proposed regulations.

The DOL has released a final rule that makes dramatic changes to the rules for determining overtime for certain executive, administrative and professional employees under the Fair Labor Standards Act (FLSA). The final rule will make it more difficult for employers to classify employees as exempt from overtime requirements. This article details the changes under the new rule and provides compliance options.

The IRS has recently granted “transitional relief” to eligible employers who are planning to claim the Work Opportunity Tax Credit (WOTC). The relief outlined in IRS Notice 2016-22 comes in the form of an extended deadline — until June 29, 2016 — to file a form necessary to claim the credit for certain eligible workers. This article explains the WOTC and describes this recent transitional guidance.

In an effort to help employers who are subject to the Affordable Care Act's (ACA’s) information reporting requirements meet those obligations, the IRS has extended two important deadlines. Employers now have an additional two months to provide employees the necessary forms and three months to report the information to the IRS. This article explains the ACA’s information reporting requirements and details the penalties for noncompliance.

The Bipartisan Budget Act of 2015 contains provisions that may significantly affect retirement planning for many Americans. It eliminates two strategies that many married couples have used to maximize Social Security retirement benefits. This article explains how the two strategies worked under previous law and describes how the budget act has changed them.

The Bipartisan Budget Act of 2015, signed into law on November 2, 2015, raises the federal debt ceiling and lifts mandatory spending caps on defense and domestic programs. The law also makes sweeping changes to the rules for auditing partnerships. The end result of the revised rules is that audits of master limited partnerships, investment funds and other business entities organized as partnerships are likely to increase. More importantly, given the significant operational impact of the new audit rules, many partnership agreements will need to be reviewed and amended. The new rules are generally effective for partnership tax years beginning after December 31, 2017 but partnerships may elect to be governed by the new audit rules for any tax year on or after November 2, 2015.

The IRS has issued its cost-of-living adjustments (“COLAs”) for 2016. Since inflation remains low, many COLA amounts remain the same as last year or were increased modestly. This article provides an overview of 2016 amounts related to individual income taxes, the alternative minimum tax, education- and child-related tax breaks, retirement plans, and gift and estate taxes.

The Affordable Transit Act (Intro 295-A) requires New York City employers to offer pre-tax transit benefits in 2016. Employers that do not already offer these benefits will need to have a qualified transportation benefit program in place when the new law takes effect on January 1, 2016. This alert describes who is covered and exempt under the law and provides information about the penalties for non-compliance.

Tucked into new trade legislation is a tax revenue raiser that increases by as much as 150% the potential penalties for taxpayers who fail to file correct tax information returns and to provide payee statements. This article details Sec. 806 of the TPEA and explains how taxpayers can reduce their risk of penalties.

The United States Supreme Court, in a 5-4 decision, recently issued its decision in Comptroller of the Treasury of Maryland v. Wynneet ux. According to the Court, Maryland’s personal income tax scheme violates the dormant Commerce Clause of the Constitution of the United States.

On Dec. 16, the Senate passed the Tax Increase Prevention Act of 2014 (TIPA), the latest “extender” package, a stopgap measure that retroactively extends through Dec. 31, 2014, certain tax relief provisions that expired at the end of the previous year. It now goes to President Barack Obama and he is expected to sign it. This article provides an overview of important tax-saving provisions for businesses and individuals.

On Oct. 30, the IRS issued its cost-of-living adjustments for 2015. In a nutshell, with inflation remaining in check, many amounts increased only slightly, and some stayed at 2014 levels. This article provides an overview of important 2015 amounts related to individual income taxes, the alternative minimum tax, education- and child-related tax breaks, retirement plans, and gift and estate taxes.

Effective Oct. 1, IRS Notice 2014-57, 2014–2015 Special Per Diem Rates, updates the per diem rates that can be used for reimbursement of ordinary and normal business expenses incurred while employees travel away from home. It also revises the list of high-cost localities for use in the high-low substantiation method. The per diem rates, which are established by the General Services Administration (GSA), are updated before the end of the federal government’s fiscal year. Some employers elect to use these rates to simplify recordkeeping.

Earlier this year, the US Tax Court made a controversial ruling regarding IRA (Individual Retirement Account) rollovers that contradicted an IRS publication designed to explain the law to taxpayers. Soon after, the IRS announced that it would adopt the court’s less taxpayer-friendly interpretation of the rollover rules. Taxpayers with multiple IRAs will have to be much more careful when making rollovers to ensure they don’t violate the aggregate rules and generate unnecessary tax liability — and possibly interest and penalties. This alert provides a brief overview of the Tax Court case, the IRS response and some other rules surrounding IRA rollovers that taxpayers should be aware of.

The US Department of the Treasury and the IRS have issued what is expected to be their final significant package of regulations implementing the Foreign Account Tax Compliance Act (FATCA). FATCA requires foreign financial institutions (FFIs) — including foreign banks, brokers, insurance companies and investment funds — to disclose to the IRS certain information about their US -owned accounts. This article reviews the major provisions of the amended final regulations and the potential impact on individual taxpayers with foreign accounts.

Although tax legislation signed into law this past January made a wide variety of tax breaks permanent, it extended several valuable breaks for businesses only through Dec. 31, 2013. It’s possible that some, or even all, of them could be extended again. But with the battle in Washington over tax reform, it’s difficult to predict what will happen with expiring breaks. So taxpayers may want to take steps now to lock in any breaks that can benefit their businesses while these breaks are still available. But they shouldn’t ignore traditional year end strategies for their businesses — or themselves.

The IRS has released its final regulations on the tax treatment of expenditures related to tangible property. The regulations provide guidance on how to comply with Sections 162 and 263 of the Internal Revenue Code, which require the capitalization of amounts paid to acquire, produce or improve tangible property but allow amounts for incidental repairs and maintenance of property to be deducted. The regulations explain how to distinguish between capital expenditures and deductible business expenses.

The regulations (IRS T.D. 9636) generally will apply to tax years beginning on or after Jan. 1,2014. They affect all businesses that own or lease tangible property, including buildings, machinery, vehicles, furniture and equipment.

In Revenue Ruling 2013-17, the IRS clarified that a same-sex couple’s marital status for federal tax purposes is determined by the laws of the state where they got married — not the state where they reside. This article details Revenue Ruling 2013-17 and explains its impact on tax and estate planning.

The AICPA has announced a new option for small business financial reporting. The “Financial Reporting Framework for Small- and Medium-Sized Entities” is intended to ease reporting for smaller, privately held, owner-managed businesses that aren’t required to abide by Generally Accepted Accounting Principles (GAAP). This alert details the framework and provides an overview of three FASB-endorsed proposals from the Private Company Council that would ease accounting requirements for privately held companies.

New York State Governor Andrew M. Cuomo's Executive Order #38 (EO #38), which sets limits on administrative expenses and executive compensation for covered provider entities, went into effect on July 1, 2013. EO # 38 is applicable to entities regulated by any of 13 specified State agencies. This alert summarizes the key features.

The IRS has issued guidance on the recently announced delay in implementation of the Patient Protection and Affordable Care Act’s (PPACA) information-reporting provisions and its employer shared-responsibility — also known as “play or pay” — provision. This alert summarizes the delayed provisions, the reasons for the delay and its impact.

On June 26, the US Supreme Court issued two landmark decisions. United States v. Windsor requires the federal government to recognize same-sex marriage in states where it’s legal. Hollingsworth v. Perry may allow same-sex marriage in the country’s most highly populated state, California. These 5-4 decisions could dramatically affect tax and estate planning for same-sex married couples, as well as the benefit plans employers and the federal government provide to such couples. This article provides a brief overview of the decisions and the potential for signifcant tax and benefits implications.

The IRS has modified the Voluntary Classification Settlement Program (VCSP) to, among other things, allow employers under IRS audit (other than an employment tax audit) to participate. It also temporarily further expands eligibility — through June 30, 2013. But while the expansions may seem like a win-win option for employers, participating isn’t without risk. This article reviews VCSP eligibility, processes and terms, and details the recent changes.

The U.S. Department of the Treasury and the IRS have issued comprehensive final regulations implementing Foreign Account Tax Compliance Act (FATCA) information reporting provisions. Under the regulations, foreign financial institutions (FFIs) — including foreign banks, brokers, insurance companies and investment funds — must disclose to the IRS certain information about their U.S.-owned accounts. This article reviews the major provisions of the final regulations and the potential impact on individual taxpayers with foreign accounts.

The American Taxpayer Relief Act of 2012 (ATRA), signed into law Jan. 2, 2013, primarily addresses income taxes. However, it also provides substantial estate tax relief compared to the changes that otherwise would have gone into effect in 2013. In addition, it provides increased estate tax law certainty. Nevertheless, ATRA is not all positive for estate planning, as it increases the estate tax rate compared to the 2012 estate tax law regime. The many changes going into effect in 2013 warrant a review of your estate plan. Here are some of the most important changes to consider.

The American Taxpayer Relief Act of 2012 (ATRA) does, as its name implies, provides substantial tax relief to many taxpayers. However, while higher-income taxpayers will enjoy some benefits, they’ll also see some tax increases. Here’s a closer look at ATRA’s most important changes for individuals, along with the tax planning implications.

The American Taxpayer Relief Act of 2012 (ATRA) extends and enhances many breaks for businesses. In particular, it provides incentives for businesses to invest in assets, research and people. This article provides an overview of ATRA’s most important changes for businesses, along with the implications for 2012 tax returns and tax planning for 2013 and beyond.

Recently, the IRS issued proposed regulations regarding the new 3.8% net investment income tax (NIIT, also known as the Medicare contribution tax) that was created by the Health Care and Education Reconciliation Act of 2010 and takes effect Jan. 1, 2013. This Alert details what investment income is subject to the tax and how to calculate it. Please click here to learn more.

After much contention and negotiation, President Obama and Congress finally came to agreement on legislation to address the “fiscal cliff.” The American Tax Relief Act (ATRA) prevents income tax rate increases for all but approximately the top 2% of taxpayers. ATRA also extends other income tax breaks for individuals and businesses and addresses the alternative minimum tax (AMT) and the estate tax. This alert provides an overview of some of the act’s key tax law changes.

As a result of the tremendous impact of Hurricane Sandy, the Internal Revenue Service (IRS) has announced that it is postponing various tax filing and payment deadlines for affected taxpayers. Those taxpayers in parts of New York, New Jersey and Connecticut that have been declared a disaster area by the Federal Emergency Management Agency (FEMA) will have until February 1, 2013 to file returns and pay taxes due.

This is an update to the Marks Paneth Tax Alert issued on August, 28, 2012 addressing the New York State (NYS) Supreme Court decision, Mangano, et al. v. Silver, et al., which held the NYS Metropolitan Commuter Transportation Mobility Tax (MCTMT) to be unconstitutional and that employers located in the the Metropolitan Commuter Transportation District (MCTD) who have been paying this tax since its effective date, March 1, 2009, should file protective refund claims on or before November 2, 2012. At the time of the August alert, NYS had not issued guidance on the proper procedure, so we recommended that taxpayer/employers file amended Forms MTA-305 in paper form.

On August 31, 2012, the IRS issued additional information regarding the streamlined federal income tax return and foreign bank account reporting requirements available to certain delinquent taxpayers which was first announced on June 26, 2012 (the Streamlined Program). The Streamlined Program was created in response to the fact that many individuals had recently become aware (primarily due to increased media coverage) of their ongoing US tax filing obligations and wanted to become compliant. The Streamlined Program came into effect on September 1, 2012.

On August 22, 2012, in the case entitled Mangano, et al. v. Silver, et al, NYS Supreme Court, No. 14444/10, New York State (NYS) Supreme Court Justice Bruce Cozzens granted the plaintiffs’ motion for summary judgment and held the Metropolitan Commuter Transportation Mobility Tax (MCTMT) to be unconstitutional under the NYS Constitution. The Justice said that the MCTMT did not serve a substantial state interest and the tax appropriated public funds for a local project.

The US Department of the Treasury has issued a model intergovernmental agreement to implement the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA). The provisions are intended to combat offshore tax evasion, and they require foreign financial institutions (FFIs) to report to the IRS information about certain financial accounts.

The Financial Accounting Standards Board (FASB) recently issued revised standards for public and private companies on how to test indefinite-lived intangible assets, other than goodwill, for impairment. The amendments won’t change how a company measures an impairment loss, but they could allow some companies to skip the performance of the quantitative impairment test on assets such as trademarks, licenses and distribution rights when the likelihood of impairment is low.

On July 13, the staff of the U.S. Securities and Exchange Commission (SEC) issued its final report on the agency’s work plan in relation to International Financial Reporting Standards (IFRS). Although the 127-page report provides analysis of six key areas, what may be most notable is that it doesn’t make a recommendation as to what the SEC’s decision should be regarding incorporating IFRS into the financial reporting system for U.S. issuers. This article provides an overview of the report.

June 28’s US Supreme Court ruling has drawn attention to the far-reaching provisions of the Patient Protection and Affordable Care Act of 2010. Since 2010, various provisions have trickled into effect. But the waters of change are gaining speed, with several particularly significant provisions scheduled to take effect over the next 18 months, barring congressional action.

Businesses face a variety of compliance requirements under the act, though certain small businesses may be eligible for a tax-saving opportunity. What all businesses need to do now is prepare.

Since the US Supreme Court issued its health care law ruling, most of the attention has focused on its mandates, expansion of coverage and state insurance exchanges. But the Patient Protection and Affordable Care Act of 2010 includes some significant tax-related provisions affecting individuals that are scheduled to take effect in 2013 and 2014, unless Congress repeals them or takes other action.

Now is the time to start planning so you can minimize any negative tax consequences to the extent possible.

The IRS recently issued guidance on its current Offshore Voluntary Disclosure Program (OVDP) and tightened eligibility requirements. The program allows taxpayers with undisclosed foreign accounts and assets to “come clean” in exchange for reduced penalties and protection against criminal prosecution. The IRS also announced new procedures, effective September 1, 2012, which provide US citizens living abroad with an opportunity to catch up with their tax filings — in many cases penalty-free if they have little or no US tax due.

The Jumpstart Our Business Startups Act of 2012 (JOBS act) is designed to provide capital for small businesses and startups. Under the new law, a qualified business will be able to raise cash without meeting all the usual requirements for initial public offerings (IPOs).

On May 23, after considering numerous public comments, the Financial Accounting Foundation (FAF) — parent organization to the Financial Accounting Standards Board (FASB) — approved the creation of the Private Company Council (PCC).

The PCC will identify and vote on exceptions and modifications to US Generally Accepted Accounting Principles (GAAP) that respond to the needs of private companies and their financial statement users. Its decisions will be subject to “endorsement” by FASB. The PCC will replace the existing Private Company Financial Reporting Committee (PCFRC).

Since 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been working toward "convergence" of US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Although the two boards have made significant progress, efforts to converge critical standards — such as those dealing with revenue recognition, financial instruments and leases — have been challenging and time consuming.

FASB and IASB had planned to complete their major convergence projects by mid-2011, but several are still in progress. Recognizing that convergence will take more time, on April 13 the European Commission (the European Union's executive body) extended rules that permit European Union–listed US companies to continue to use US GAAP. The rules had expired at the end of 2011, but the European Commission granted a three-year extension, retroactive to Jan. 1, 2012.

Without congressional action before year end, on Jan. 1, 2013, gift and estate tax exemptions will drop and rates will increase. But Congress may address the expiring estate tax law provisions. Such uncertainty can play havoc with estate planning. This article explains how making lifetime gifts can take advantage of the currently high exemption amount and low tax rate and details ways to add flexibility to an estate plan to prepare for potentially lower exemptions and higher rates in 2013.

The IRS has issued extensive regulations, in temporary and proposed form (the temporary regulations serve as the text for the proposed regulations), providing its long-awaited guidance on the tax treatment of expenditures related to tangible property. These regulations are intended to simplify compliance with Section 263 of the Internal Revenue Code, which generally requires the capitalization of amounts paid to acquire, produce or improve tangible property. They focus largely on how to determine whether expenditures are for deductible repairs or capital improvements. The regulations will affect all businesses that acquire, produce, or improve tangible property.

The new regulations (IRS TD 9564 and REG-168745-03) generally apply to expenditures made in tax years beginning on or after Jan. 1, 2012, so they don't apply to 2011 tax returns. For 2012 and beyond, however, the regulations will affect a wide swath of businesses that purchase, lease, produce or improve tangible property, such as buildings, machinery, vehicles, furniture and equipment.

After much debate and political maneuvering, Congress has passed the Temporary Payroll Tax Cut Continuation Act of 2011. The act provides an extension of payroll tax relief until February 29, 2012. This article provides a brief overview of the legislation.

Temporary regulations have been issued under Section 6038(D) relating to the requirement that individuals attach a statement to their tax return with respect to foreign financial assets. The IRS will release Form 8938 shortly which will be used to identify and report interests in foreign financial assets. It is important for taxpayers to determine whether they are subject to this new requirement because the tax law imposes significant penalties for non-compliance. Form 8938 does not replace or otherwise affect a taxpayer's obligation to file an FBAR.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extends and expands a wide variety of valuable tax breaks for individuals and businesses. It also provides some good news for those concerned about estate tax liability. This Marks Paneth Tax Alert provides highlights of the provisions of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

Congress has passed — and President Obama has signed — the Small Business Jobs Act of 2010 (SBJA); thereby, creating a $30 billion fund to provide capital to community banks to encourage lending to small businesses. The legislation also includes $12 billion in tax relief for small businesses and incentives to encourage investment in them. The SBJA also provides some benefits for larger businesses as well as for the self-employed and individual taxpayers.

Section 6041 of the Internal Revenue Code lays out the basic requirements for Form 1099 reporting. The Patient Protection and Affordable Care Act of 2010 includes a significant amendment to Section 6041, which now requires 1099 reporting for any payments aggregating $600 to a supplier per year. The new amendment will now create filing and reporting requirements for all for-profit corporations. The definition of a corporation that is contained in the amendment includes an exclusion or modification for tax-exempt corporations.

The Federal Trade Commission (FTC) issued the Red Flags Rule for financial institutions and creditors to fight identity theft. The rule requires many businesses and organizations to implement a written Identity Theft Prevention Program designed to detect warning signs – or "red flags" – of identity theft in their day-to-day operations, take steps to prevent crime, and mitigate the damage it inflicts. The Red Flags Rule applies to financial institutions and creditors. The rule requires a periodic risk assessment to determine if the entity has covered accounts. A written program needs to be in place only if the entity has covered accounts.

The Internal Revenue Service (IRS) has released guidance on provisions of the Patient Protection and Affordable Care Act (PPACA) related to the tax treatment of employer-provided health coverage for adult children. Under the PPACA, coverage requirements have expanded and such coverage is generally tax free for employees. IRS Notice 2010-38 explains the implications for workplace and retiree health plans, including cafeteria plans and flexible spending accounts (FSAs).

You've filed — or at least extended — your 2009 income tax return, so it's time to start thinking about 2010 and beyond. If you're a higher-income taxpayer, one new opportunity you may have heard about is the Roth IRA conversion. But is it right for you?

The tax provisions of the Patient Protection and Affordable Care Act will have an impact on most taxpayers as well as on how employers deal with health care insurance for their employees. The main tax provisions affecting individuals and businesses are discussed in this Marks Paneth Tax Alert.

The Hiring Incentives to Restore Employment (HIRE) Act provides tax incentives for hiring and retaining workers and purchasing equipment and many other business assets. It also includes new measures that heighten disclosure and reporting requirements for foreign accounts. Some key features of the Act are discussed in this Marks Paneth Tax Alert.

The role of the board of directors of nonprofit organizations in the oversight of compliance programs is increasingly gaining in importance and visibility. The experienced professionals at Marks Paneth can help board members and their organizations comply with the heightened regulatory environment today and going forward.

We are adept at conducting corporate compliance reviews and identifying risk areas in need of improvement. Our specialists have the tools and expertise to remedy risks before they become problems.

The Health Care Compliance Association (HCCA) has recently conducted an interview with James G. Sheehan, New York State Medicaid Inspector General, which you may find of interest. Mr. Sheehan discusses his thoughts about the role of the board of directors in overseeing compliance programs.

As of October 1, 2009, The Office of the Medicaid Inspector General (OMIG) now requires all organizations that rely on Medicaid reimbursements to ensure that all persons, providers and affiliates providing care, services or supplies under Medicaid be in good standing and eligible to receive payment.

The most recent Marks Paneth Nonprofit and Government Group Alert discusses the tax implications that apply to common alternative investments made by exempt organizations, as well as the reporting requirements and questions organizations should consider before making investment decisions.

Companies and individuals alike seek to minimize their tax liability while still complying with applicable tax laws and regulations. Year-end tax planning can help achieve these goals and facilitate the filing of next year's tax returns. This year — with the legislative uncertainty about 2011 tax rates as well as the availability of many tax breaks for 2010 and 2011 — tax planning is made even more challenging.

TD F 90-22.1 is required to be filed for all accounts where a U.S. person or entity has a financial interest or signature authority in foreign financial accounts if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year. These relationships are reported on the calendar year by filing Form TD F 90-22.1 with the Department of the Treasury on or before June 30, of the succeeding year.

On June 12, three IRS personnel participated in a teleconference with a law firm that was designed to address open questions regarding the TDF 90-22.1 filing for calendar year 2008 that must be filed by June 30. It was their position (not official IRS position at this point) that an offshore hedge fund is a "foreign financial account" for this purposes and that, therefore, every U.S. investor in an offshore hedge fund should file a TDF 90-22.1 Form, whether or not the fund has any offshore bank or securities accounts. While the IRS's position on hedge funds is not official, it does carry substantial weight and should be considered.

During election years, the Internal Revenue Service takes a keen interest in whether charitable (501(c)(3)) organizations are intervening in political activities. This is particularly relevant in Presidential campaign years. One common characteristic to most charitable organizations is a passion about their respective causes. Since candidates for office are generally "issues" oriented, it is understandable that organizations, particularly those involved in advocacy for a cause, want to support the candidate that supports their position.